Bitcoin Price Prediction: Favourable Information from Japanese Policies, CBDC Controversies, and Webull's Support, BTC Holds the 110,000 USD Level

On August 26, Bitcoin (BTC) reported at $109,570, with a 24-hour fall of over 3% and a volume of $84 billion. Although short-term pressure exists, favourable information from Japan’s policy, global controversies over Central Bank Digital Currencies (CBDC), and news of Webull expanding encryption trading features are providing support for BTC’s long-term trend.

Japan Releases Favourable Information for Encryption

Japan’s Finance Minister Katsunobu Katō stated in Tokyo that cryptocurrencies can serve as an important tool for portfolio diversification. Even though they are highly volatile, they can help investors hedge against risks.

Background factors: Japan’s debt to GDP ratio exceeds 200%, and the yen continues to be under pressure.

Potential Impact: Under low interest rates and inflation risks, digital assets may become a hedging and value appreciation choice for Japanese investors.

Policy Orientation: Encourage innovation, avoid excessive regulation, and is expected to stimulate domestic BTC adoption rate.

CBDC controversy drives Bitcoin’s hedging properties

The global Central Bank digital currency plans continue to spark controversy:

UK think tank warns: Programmable CBDC could give the government “total control” over currency, likened to Orwellian surveillance in “1984”.

Discrepancies between the United States and Europe: Trump has banned CBDC as of January 2025; the European Central Bank will launch a privacy-focused digital euro in October.

Market Interpretation: The decentralized nature of Bitcoin is seen as a “safety net” against excessive centralization of currency, reinforcing its long-term value storage position.

Webull Returns to the Encryption Trading Market

The US investment platform Webull has reopened cryptocurrency trading in its main app, supporting over 50 assets, including BTC, ETH, SOL, and integrating with stock and options trading.

Reason: clearer regulations, increasing demand

Impact: Intensified competition with Robinhood lowers the threshold for retail investors to enter BTC, which is beneficial for long-term demand growth.

Bitcoin Technical Analysis

(Source: Trading View)

Trend structure: Still in a descending channel, with high and low points continuously moving down.

Resistance levels: 50 EMA (114,180 USD), 100 EMA (115,000 USD)

Support level: $110,000 (key defense), below are $108,700 and $105,150.

Technical Indicators:

RSI: 32, approaching the oversold zone, indicating that selling pressure may be nearing its end.

MACD: Still in negative territory, but the histogram is narrowing, indicating signs of momentum exhaustion.

K line: The lower shadow is longer, indicating active buying at low levels.

Price Prediction and Key Focus

Short-term Situation:

Hold above 110,000 USD → rebound challenges 112,000 USD, after breaking through look towards 115,000 USD

Break through 116,850 USD → Expected to hit 120,900 USD, even 124,450 USD

Medium-term target: If the bulls regain control, we may see $130,000 in the coming months.

Risk Factors: If it falls below 110,000 USD, it may trigger an accelerated correction, testing the 108,700 USD support.

Conclusion

Although Bitcoin’s short-term performance is affected by selling pressure, Japan’s favourable policies, the demand for hedging amid CBDC controversies, and Webull’s expansion of trading functions inject confidence into its long-term trend. Technical analysis shows that $110,000 is a key support level; if it holds steady and breaks through the resistance range, BTC is expected to challenge $130,000 in the coming months.